Two Communities Sold for $10.7M
- Jun 17, 2010
Harrisburg, Pa.— The Kislak Company Inc. announced the completion of two multifamily transactions in Pennsylvania totaling nearly $10.7 million. The sales include Walnut Crossing, a 134-unit apartment property in Harrisburg, Pa., and Berkshire Towers, a 90-unit apartment building with two commercial spaces in Reading, Pa.
Senior Vice President and Co-Managing Director Robert Holland represented both parties in each transaction. This marked the second time that Kislak handled the sale of these properties.
“Kislak continues to dominate the apartment market in central and eastern Pennsylvania thanks, in large part, to Rob’s efforts,” says Jeffrey Wiener, president and co-managing director. “He has sold more apartment buildings in those Pennsylvania markets than any other broker.”
Walnut Crossing sold for $7,030,000. The property, located in suburban Harrisburg, is a two-story brick garden apartment complex with mansard roofs and includes one, two and three-bedroom units. Tenants are responsible for heat and electricity. At the time of closing, the property was approximately 92 percent occupied. The purchaser plans to upgrade the property’s kitchens and bathrooms.
“Kislak sold this property to the seller about 10 years ago and a long-time client that was interested in adding it to its large multistate portfolio purchased it,” says Holland. “Harrisburg is a strong and stable rental market that continues to grow with the presence of both the state government and many other employers. It continues to draw interest among both local and out-of-state investors.”
The purchaser assumed an existing first mortgage of approximately $5,100,000 from Freddie Mac. The seller was represented by Jeffrey Leonard, Esq. and Tracey Nguyen, Esq. of Cozen O’Connor of Philadelphia. The purchaser was represented by Anthony Pantano, Esq. of Nowell Amoroso Klein Bierman, PA of Hackensack, New Jersey.
Berkshire Towers sold for $3,650,000. The property, located in downtown Reading, is a 10-story high-rise elevator apartment building built in 1974 that includes one and two-bedroom apartments. Tenants are responsible for electricity. At the time of closing, the property was approximately 95 percent occupied. The purchaser plans to upgrade the property’s kitchens and bathrooms and add curb appeal.
“We had also sold this property about 10 years ago,” says Holland. “The owner engaged us on an exclusive basis to market the property. We procured a local buyer eager to add a property of this size to his portfolio.”
The purchaser obtained financing from PNC Wealth Management. The seller was represented by Michael Setley, Esq., of Setley, Rauch & Bucolo, LLC of Reading. The purchaser was represented by Robert Cherry, Esq. of McNees Wallace & Nurick LLC of Harrisburg.